Associate Equity Program – Neighbourly Brands

Associate Equity Program Neighbourly

You must be employed at the next Neighbourly sale transaction to be eligible.

Neighbourly recognises every associate as playing a role in overall value creation, and therefore has created a cash transaction bonus program that is designed to pay out upon the next Neighbourly sale transaction transaction based on the increase in the equity value of Neighbourly’s parent company after the acquisition of Neighbourly by KKR on September 1, 2021.

All associates hired as permanent (non-temporary/seasonal basis/interim), full time and part-time, that are not offered or eligible to participate in any other leadership equity program are included as participants in the AEP.

Achieve a 3x return to our investors

Eligible
Compensation

£XXk

Payout

Use the calculator below

Calculate how much you could receive

What was your start date? What was your salary?

If you commenced after 1 December 2021, to be fully vested, you will need to have 3 years’ service as the point of sale.

Depending on the amount of the increase in the equity value at the time of the next Neighbourly sale transaction, this bonus may be higher or lower. All bonus amounts are expected to be taxed as ordinary income and subject to normal withholdings.

It is not contractual. It is discretionary and paid only if/when KKR sell and the amount is depending on the transaction value.

Potential Payout:£00,000

Associate Equity Program FAQs

What is the AEP?

Neighbourly recognises every associate as playing a role in overall value creation, and therefore has created a cash transaction bonus program that is designed to pay out upon the next Neighbourly sale transaction based on the increase in the equity value of Neighbourly’s parent company after the acquisition of Neighbourly by KKR on September 1, 2021.

What associates participate in the AEP?

All associates hired as permanent (non-temporary/ seasonal basis/interim), full time and part-time, that are not offered or eligible to participate in any other leadership equity program are included as participants in the AEP.

What is my AEP bonus target?

Neighbourly is targeting 75% of your base salary/hourly compensation (excluding overtime) and commissions (if applicable), assuming the company meets anticipated investor returns. This target could be higher or lower depending on our investor returns (overall company performance).

How will the eligible compensation be calculated for the bonus target?

We encourage growth and rewarding good performance through merit increases at Neighbourly. As such, the calculation will consider eligible compensation paid during the year preceding the next Neighbourly sale transaction instead of your eligible compensation today. For instance, if the next Neighbourly sale transaction is in 2026, Neighbourly would consider compensation paid through 31/12/25 for the calculation.

Example: Susie’s annual base compensation in the year preceding the next Neighbourly sale transaction is £30,000 (salaried). She is not eligible for commissions. Her bonus target would be £22,500 (75% of base). Depending on the amount of the increase in the equity value at the time of the next Neighbourly sale transaction, this bonus may be higher or lower.

All bonus amounts are expected to be taxed as ordinary income and subject to normal withholdings.

Why are commissions included, but not annual bonus in determining eligible compensation under the AEP?

Associates earning individual sales commissions rely heavily on them as part of their day to day base income (sometimes 100% of their base compensation or more). As such, commissions are considered eligible compensation.

Am I still eligible for other, non- commission based bonus plans?

Yes, the AEP is in addition to any other bonus plan.

What is the vesting schedule?

Associates that join Neighbourly past 1/12/21 will vest into the right to receive the AEP payment as follows: 10% on the first day of the first calendar quarter than begins after they have completed 90 days of continuous employment with Neighbourly, an additional 10% on the last day of each of the next 3 calendar quarters, an additional 30% on the second anniversary of the date on which they commenced employment with Neighbourly and the final 30% on the third anniversary of the date on which they commenced employment with Neighbourly. Fully vested after 3 years of service. Any unvested portion of their AEP payment will be forfeited when the next Neighbourly sale transaction occurs.

Will I be paid the bonus if I exit Neighbourly before the next Neighbourly sale transaction?

No. Associates must be actively employed at the time of the next Neighbourly sale transaction to receive payment.

Can I invest my own money into the company?

At this time, the AEP does not allow for associates to make individual investment contributions.

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